Representatives of community banks and credit unions again told sympathetic members of Congress about the harmful effects they anticipate upon their mortgage business once all of the related rules promulgated by the Consumer Financial Protection Bureau finally kick in come early January. Every aspect of mortgage lending is subject to new, complex and expensive regulations that will upend the economics of this line of business, Industrial Bank President and CEO Doyle Mitchell, representing the Independent Community Bankers of America, told members of the House Small Business Subcommittee on Investigations, Oversight and Regulations during a hearing this week. In particular, community bankers are deeply concerned...
The Consumer Financial Protection Bureau, which inherited RESPA enforcement from HUD, has been leaning on this test in such enforcement actions of its own.
The HUD NPL auction features 5,000 delinquent single-family loans totaling $1 billion in unpaid principal balances with representations and warranties.
In other subprime news, industry veteran Jon Daurio was recently in New York talking to potential investors about his new nonbank venture, Nikkael Capital Corp.
The top reasons for FHA condo denials include financial instability, pending litigation, insufficient insurance coverage and outdated or missing documentation.